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URGENT!!!! Suzanne is the manager of a very popular beverage store in Kendall Square, right next to MIT. The store offers a great variety of

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URGENT!!!!

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Suzanne is the manager of a very popular beverage store in Kendall Square, right next to MIT. The store offers a great variety of products, a very popular one is the Cool Cold Brew. The Cool Cold Brew is sold in cans, and the store receives 100 cans the first day of every month. The probability of stocking out of Cool Cold Brew during one cycle (1 month) is 20%. Which of the following statements is/are true? Select all correct answers If everything else remains constant, increasing the reorder point quantity will improve the Cycle Service Level. If everything else remains constant, increasing the safety stock will improve the Cycle Service Level. If everything else remains constant, reducing the lead time will improve the Cycle Service Level. The Item Fill Rate value will be higher than the Cycle Service Level. If the expected annual stockout costs are $1000, the CSOE is $417 per event. None of the above Which of the following statements about safety stock are true? Select all correct answers Keeping safety stock is expensive, therefore it can never be used for managing class B and C items. Given a certain level of service, the longer the lead time, the bigger the safety stock we would need to keep. The safety stock will not change when switching from a continuous to a periodic review policy. Given a certain level of safety stock, the Cost per Stockout Event will always be higher than the Cost per Item Short. Safety stock only buffers for the variability of demand over lead time. None of the above

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